Indian rupee ended tad higher against dollar on Thursday, owing to dollar sale by exporters and banks. Traders took some support with report that the Indian economy grew at five-quarter high of 7.2% in the October-December period of the fiscal year 2017-18 (FY18), as against 6.5% in the previous quarter and 6.8% in the same period last year, on the back of a sharp pickup in the services sector, a rebound in industrial activity, especially manufacturing and construction, and an expansion in agriculture. However, gains were limited as some anxiety came with India reporting a fiscal deficit of Rs 6.77 trillion ($103.72 billion) for April-January or 113.7% of the target originally set for the fiscal year that ends in March. Besides, dollar’s strength against major global currencies overseas along with late hour selloff in the domestic equity markets, weighed on the rupee sentiment. On the global front, dollar hit a six-week high on Thursday, supported by what was perceived as an upbeat tone from new Federal Reserve chief Jerome Powell on the US economy, bolstering bets that interest rates will be hiked four times this year in the United States.
Finally, the rupee ended at 65.15, 2 paise stronger from its previous close of 65.17 on Wednesday. The currency touched a high and low of 65.25 and 65.10 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 65.22 and for Euro stood at 79.50 on March 01, 2018. While the RBI’s reference rate for the Yen stood at 61.07, the reference rate for the Great Britain Pound (GBP) stood at 89.70. The reference rates are based on 12 noon rates of a few select banks in Mumbai.
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